250 mW Coal-Fired Power Plant

Renewable Energies/ Combined Heat and Power/ Conservation

Cost

720 million dollars paid over a 30 year period. The debt incurred at the start of construction

A much smaller  incremental amount spent only as the increase in generation is needed

Interest on Loan

Large interest compounded because all 250 mw are installed at once, paid for over the next 30 years

These installations are added as needed as little as a few kW at a time, to several mW at a time.  Significantly less interest on loans.

Load Matching Production

Load must be forecast for 10-20 years in the future. This tends to be done with very low predictability.  As we saw with MPC in the early 1980’s where the predicted load was high on Coalstrip 1,2,3,4 causing financial difficulties. Also in the first years of operation close to 50 % of the energy from this plant will be sold on the market making this plant a merchant  plant 

Load can be matched almost down to the kW using a combination of power sources with minimal purchase  needed from the wholesale market .

Method for meeting the Base, Intermediate, and Peaking  load requirements of the co-ops  and  Great Falls ECP

SME’s plan is to meet Base, Intermediate and Peaking power with a slow to non-modulating base power source.  This will require a constant and highly variable need to market excess power. This will be a highly unpredictable process as far as the economics of the operation are concerned.  

Although wind and photovoltaic are not constant or predictable generators, through net metering, they can be reasonably predictable and reliable.  They need to be coupled, however, to a firming source which will likely be a combined heat and power distribution generation sources.  These are already available and proven in Europe. Systems are available for residential use at 3-10 kW electric with waste heat for domestic hot water and space heat.  Commercial systems are available at 20-50 kW up to industrial systems at 250kW – 1-2 mW.  Distributive generation has the ability to be a demand peaking source to smooth out residential loads.

Social and government acceptance

Coal is developing a negative connotation because of pollution and climate change.  Because of this, power from coal will most likely be penalized monetarily and through regulation.   

Clean, renewable energy has earned an almost universal acceptance.  This power will be preferred and receive incentives and can be sold at a premium.  

CO2 Penalty

Power from coal plants will either be accessed a carbon tax or require a large investment for carbon sequestration . 

Clean power will benefit from tax incentives, grants and preferences because of its zero CO2 nature.  

250 mW Coal-Fired Power Plant

Renewable Energies/ Combined Heat and Power/ Conservation

Adaptability

Adapting a coal-fired CFB power plant to new technology in 10, 20, or 30 years will be difficult and expensive.  

Because clean energy sources will be added to match the load as it develops over the next 30 years, state-of-the-art equipment will always be easily incorporated into the system and small source upgrades will be easily made at minimal expense.  

RUS Requirements

It will take almost 20 years before the Co-op. predicted load matches the 250 mW output of the plant.  In order to match the 250 mWs, this plant must operate as a part merchant plant and urban and industrial supply plant.  This strays wildly from the RUS Mandate and Mission.   

Clean distributed generation is a perfect fit for a long-term slow growing variable load such as the Co-op’s have.  This alternative fits perfectly with the Mandate and spirit of the Co-op’s and RUS.